Skip to main content

Sebi to end wordy agony of IPOs

By
Plans to prune offer documents to 10 pages
The Securities and Exchange Board of India ( Sebi) has indicated it will not allow wordy or incomprehensible Initial Public Offering ( IPO) documents.
(IPO is the act of offering the stock of a company on a public stock exchange for the first time.) "Very soon, we will come out with ( rules for an) abridged prospectus... It will be really understandable for investors. Whatever ( information) is required to take well informed decisions will be available in 10 pages," said P K Nagpal, executive director, Sebi.
He was speaking at an event here, organised by the PHD Chamber of Commerce and Industry.
As a rule, IPO documents run into hundreds of pages and investors often find it difficult to comprehend the key information.
What Sebi appears to be planning is to have a rule that the entire offer document only be available on a soft copy format on the websites of Sebi, the company in question and the investment bankers to an IPO.
The 10- page abridgement would have details about the companys promoters, pertinent litigation and materially important subsidiaries, said people in the know. “Retail investors are generally not inclined to read the many- page document and sometimes miss the important bit in the overload of information. An abridged version would ensure they have the relevant information and also reduce the burden on companies (in printing and distributing the entire thing, among others),” said V Jayasankar, head of equity capital markets, Kotak Investment Banking.
Prithvi Haldea, chairman, Prime Database, says a shortened version of the offer document with all the relevant information will help investors. “ The abridged prospectus would ensure that investors have all the material information to make an informed decision. Where investors need more details, they can always access the entire document,” he said.
Nagpal recounted some recent steps by Sebi on related matters. Recently, for instance, it had approved electronic IPOs, to help cut the interval till listing time to only seven days. Also, the regulator has quickened the clearance process, and allowed more companies tap the fast- track route for a rights issue and follow- on offers.
Sebi had earlier reshuffled its corporate finance division to ensure smoothening of the process. It is also said to be working on asystem- driven disclosure regime for listed companies, to help improve monitoring of insider trading and any lapse in corporate governance. The idea is that the proposed system use technology for automatic gathering and integration of information.
Business Standard, New Delhi, 13th Oct. 2015

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more